VIX rises as semiconductor stocks reverse after a sharp rally
VIX jumps as semiconductor stocks pull back and volatility spikes across markets See why traders are resetting risk as options demand and yields shake tech
Wall Street's volatility gauge jumped on Friday as a twomonth surge in semiconductor shares ran out of momentum, marking a sharp pullback in one of the market's most crowded trades.
The Cboe Volatility Index, or VIX, posted its largest oneday gain since March after briefly falling to its lowest level since January earlier in the week. The move came as the VanEck Semiconductor ETF fell nearly 10% from its highs and the Nasdaq posted its worst day since April 2025.
Traders said the drop reflected a reset in market positioning after extreme moves in chip stocks, rising demand for options, and strongerthanexpected jobs data that pushed Treasury yields higher. The article also noted increased bearish options activity in bond funds and some cryptorelated stocks as investors adjusted to the broader selloff.